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Keep in mind, the opinions on this site are for the most part speculation and are not necessarily the opinions of the company WITHOUT PREJUDICE

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Message: water

This is taking from the recent technical report. I dont beleive any water permits are required and that the water is bought, thus bypassing any permitting process for water in this area. There ARE areas in Peru where certain companies by water rights from the locals, but that doesn,t seem to be the case with us because of the low volumes needed for exploration and drilling compared to actual mining. When you get to actual mining, there are new methods being introduced to the industry that require a lot less water than the traditional methods. Anyway, the latter concern is for the buyer of the Tesoro and I don,t see this being a problem.

4.4 INFRASTRUCTURE

There is no major infrastructure on the Tesoro Project, and what does exist is primarily due to St.

Elias, including access roads, camp facilities (for ~30 people), and surface and underground

development. There are no sources of water on the Property and rainfall is essentially nonexistent

so all water required for exploration is required to be trucked in (from the Acari River, 29

km away). The nearest community, Otapara, lies 39 km southwest from the Property and takes

two (2) hours travel time by vehicle to reach it. Food, water and other basic needs are available in

Otapara which is a centre of mining and mining related support (manpower and supplies) for the

district

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